WA Gold Advances Abercromby Gold Project With Expanded Drilling
Synopsis
The company has completed the first phase of a drilling campaign at its 518,000-ounce Abercromby project, with further exploration planned to grow resources and support future mine development.
Key Highlights
- First phase of drilling at Abercromby gold project completed by WA Gold.
- Three thousand two hundred seventy-seven metres of seven diamond drill holes completed with anticipated assay results due this month
- A 6,000-metre follow-up drilling program will be initiated this quarter.
WA Gold Wiluna drilling WA Gold (ASX: WAU), previously known as BMG Resources, has completed Phase 1 diamond drilling at its Abercromby gold project in Western Australia’s Wiluna-Agnew greenstone belt. The company drilled seven holes for 3,277 metres, with samples dispatched for lab testing and results anticipated this month.
Drilling Supports Feasibility Study
This drilling is part of a larger 10,000-metre WA Gold program to assist a feasibility study following on from the recent scoping study by the company.
WA Gold reported that all seven holes intersected the target structure hosting the Capital deposit, testing below and south of the current resource across a 500-metre strike length based on geological logging.
This quarter will see an additional 6,000 metres of fully funded resourcedevelopment and step-out drilling recommencing to extend the Wiluna gold resourceand upgrade confidence in the deposit.
Scoping Study Outlines Development Plan
A scoping study outlined an A$8 million upfront staged development of the Abercromby gold project aimed to deliver 114,000oz gold over 4.5 years.
Initially the plan is to mine 20% of the JORC-compliant mineral resource of 11.12 million tonnes going 1.45g/t gold. With a gold price of A$6,000 per ounce, the study provides pre-tax free cash flow of A$270 million and 1.5 year payback time.
Processing Agreement Under Evaluation
WA Gold has also entered a memorandum of understanding with Wiluna Mining (ASX: WMC) to investigate toll treatment at the nearby Matilda CIL plant, which sits 20 kilometres south east of Abercromby.
The ore is free milling, as metallurgical test work indicated and gold recoveries are expected to range from 93% to 95% via a standard carbon-in-leach circuit.
Source: The West Australian
Follow Inspirepreneur Magazine for daily global business news.
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
